Psz 19:16 (pind. 1/97)

UNIVERSITI TEKNOLOGI MALAYSIA

BORANG PENGESAHAN STATUS TESIS♦♦♦♦

JUDUL: QUALITY PERFORMANCE OF ISO 9000/2001 CERTIFIED CONTRACTORS

SESI PENGAJIAN: 2006/2007

GUI HUN CHUEN Saya

(HURUF BESAR)

mengaku membenarkan tesis (PSM/ Sarjana/ Doktor Falsafah)* ini disimpan di Perpustakaan

Universiti Teknologi Malaysia dengan syarat-syarat kegunaan seperti berikut:

1. Tesis adalah hakmilik Universiti Teknologi Malaysia

2. Perpustakaan Universiti Teknologi Malaysia dibenarkan membuat salinan untuk

tujuan pengajian sahaja.

3. Perpustakaan dibenarkan membuat salinan tesis ini sebagai bahan pertukaran

antara institusi tinggi.

4. ** Sila tandakan (√ )

SULIT (Mengandungi maklumat yang berdarjah keselamatan

atau kepentingan Malaysia seperti yang termaktub di

dalam AKTA RAHSIA RASMI 1972)

TERHAD (Mengandungi maklumat TERHAD yang telah

ditentukan oleh organisasi/badan di mana penyelidikan

dijalankan)

TIDAK TERHAD

Disahkan oleh:

_______________________________ ____________________________

(TANDATANGAN PENULIS) (TANDATANGAN PENYELIA)

Alamat Tetap: IR. DR. ROSLI MOHAMAD ZIN

19, Lorong 4B, Taman Mabel,

Jalan Laksamana Cheng Ho, Nama Penyelia

93350 Kuching, Sarawak.

Tarikh : JULY 2007 Tarikh : JULY 2007

CATATAN: * Potong yang tidak berkenaan

** Jika tesis ini SULIT atau TERHAD, sila lampirkan surat daripada pihak

berkuasa/ organisasi berkenaan dengan menyatakan sekali sebab dan tempoh

tesis ini perlu dikelaskan sebagai SULIT atau TERHAD.

♦ Tesis dimaksudkan sebagai tesis bagi Ijazah Doktor Falsafah dan Sarjana secara

penyelidikan, atau disertai bagi pengajian secara kerja kursus dan penyelidikan,

atau Laporan Projek Sarjana Muda (PSM).

√

“I hereby declare that I have read this project report

and in my opinion this project report is sufficient

in terms of scope and quality for the award of the degree of

Master of Science (Construction Management).”

Signature : .............................................

Name of Supervisor : Ir. Dr. Rosli Mohamad Zin

Date : .............................................

i

QUALITY PERFORMANCE OF ISO 9000/2001

CERTIFIED CONTRACTORS

GUI HUN CHUEN

A project report submitted in partial fulfillment of the

requirements for the award of the degree of

Master of Science (Construction Management)

Faculty of Civil Engineering

Universiti Teknologi Malaysia

JULY 2007

ii

I declare that this project report entitled

“Quality Performance of ISO 9000/2001 Certified Contractors”

is the result of my own research except as cited in the references.

The report has not been accepted for any degree

and is not concurrently submitted in candidature of any other degree.

Signature : .............................................

Name : Gui Hun Chuen

Date : .............................................

iii

DEDICATION

To:

Lord Jesus,

My Beloved Family,

&

Soo Lin.

Thank you for your love and support.

iv

ACKNOWLEDGEMENTS

First of all, I would like to express my sincere appreciation to my project

supervisor, Ir. Dr. Rosli Mohamad Zin of the Faculty of Civil Engineering, Universiti

Teknologi Malaysia, for his generous advice, patience, guidance and encouragement

throughout the duration of my study.

Secondly, I would also like to express my gratitude to Ir. Mukthar Che Ali,

the manager of CIDB Johor, who has given me a lot of guidance and advice on this

project. This project has been conducted together with CIDB Malaysia; therefore I

would like to thank all those involved directly or indirectly.

Furthermore, I would like to express my sincere thanks to all the ISO 9000

certified contractors, who generously spent their precious time to participate in the

questionnaire survey of this project. Their honest information, opinions and

comments are very useful indeed. My seniors and friends, who had provided all

kinds of assistance and support, also deserved my special thanks.

Finally, I am most thankful to my parents and family for their continuous

support and encouragement given to me unconditionally in completing this project

report. Without the contribution of all those mentioned above, this work would not

have been possible.

v

ABSTRACT

This research is dealing with the issues of quality performance of ISO

certified contractors in Malaysia. This research focused on evaluating the quality

performance of these contractors. Hence, the objectives of this study were (a) to

identify the benefits experienced by contractors after having ISO 9000/2001

certification, (b) to identify the factors affecting contractor’s quality performance,

and (c) to identify the monitoring and controlling tool used by contractors in

assessing their quality performance. The collection of primary data has been done by

using a questionnaire survey. Frequencies statistical analysis and average indexing

technique were used in data analysis with the help of SPSS 13.0 and Microsoft

Office Excel 2003. In general, the overall levels of achievements by contractors after

ISO certification were considered satisfactory. Nearly all contractors benefited from

having ISO certification. The most significant factor that can affect contractors’

quality performance was on-time delivery of projects to their clients. By having ISO

certification, the majority of contractors had improved their average delay and

average wastage from 10% to 5% each. There are still rooms for improvements at

the monitoring and controlling aspect, such as not all contractors prepared PQP and

ITP. In addition, the majority of contractors did not adopt PDCA methodology in

performing data analysis and did not develop Quality Performance Indicator (QPI)

that can be used to reflect their quality performance. It is hoped that this research

will contribute to ISO 9000 certified contractors in their quest for continuous

improvement in quality and becoming a core business success for their organisation.

vi

ABSTRAK

Penyelidikan ini adalah mengenai isu-isu prestasi kualiti kontraktor ISO di

Malaysia. Penyelidikan ini memberi tumpuan kepada penilaian prestasi kualiti

kontraktor-kontraktor tersebut. Oleh itu, objektif penyelidikan ini adalah (a) untuk

mengenalpasti faedah-faedah yang dinikmati oleh kontraktor setelah mendapat

pengiktirafan ISO 9000/2001, (b) untuk mengenalpasti faktor-faktor yang boleh

mempengaruhi prestasi kualiti kontraktor dan (c) untuk mengenalpasti kaedah

pengawasan dan pengawalan yang digunakan oleh kontraktor dalam menilai prestasi

kualiti mereka. Data primer telah dikumpulkan melalui kaedah tinjauan borang soal-

selidik. Analisis statistik frekuensi dan teknik indeks purata digunakan dalam

menganalisis data dengan bantuan perisian SPSS 13.0 dan Microsoft Office Excel

2003. Secara amnya, tahap pencapaian keseluruhan kontraktor setelah mendapat

pengiktirafan ISO boleh dikatakan mencapai tahap yang memuaskan. Hampir

kesemua kontraktor mendapat manfaat daripada persijilan ISO. Faktor yang paling

mempengaruhi prestasi kualiti kontraktor adalah penyerahan projek mengikut

tempoh masa kepada klien. Dengan memperolehi pengiktirafan ISO, kebanyakan

kontraktor berjaya memperbaiki purata kelewatan serta pembaziran mereka dari 10%

ke 5%. Dari aspek pengawasan dan pengawalan, masih terdapat ruang untuk

diperbaiki, antaranya seperti tidak semua kontraktor menghasilkan PQP dan ITP.

Tambahan pula, kebanyakan kontraktor tidak mengamalkan metodologi PDCA

dalam melaksanakan analisis data dan tidak menghasilkan suatu petunjuk prestasi

kualiti yang boleh digunakan untuk menggambarkan prestasi kualiti mereka.

Diharap penyelidikan ini dapat memberi sumbangan kepada kontraktor ISO dalam

usaha mempertingkatkan kualiti kerja serta dapat menjadi asas kepada kejayaan

organisasi mereka.

vii

TABLE OF CONTENTS

CHAPTER TITLE PAGE

DECLARATION ii

DEDICATION iii

ACKNOWLEDGEMENTS iv

ABSTRACT v

ABSTRAK vi

TABLE OF CONTENTS vii

LIST OF TABLES xiv

LIST OF FIGURES xv

LIST OF APPENDICES xviii

1 INTRODUCTION

1.1 Introduction 1

1.2 Issues and Problem Statements 2

1.3 Research Objectives 5

1.4 Research Scopes and Limitations 5

1.5 Research Significance 5

1.6 Research Approach 7

1.6.1 Research Methodology Flow Chart 8

2 LITERATURE REVIEW

2.1 ISO Background 9

2.2 Development Of The ISO 9000 Standards 10

viii

2.2.1 1987 Version 12

2.2.2 1994 Version 12

2.2.3 2000 Version 13

2.3 Popularity Of ISO 9000 13

2.4 Brief Scenario In Malaysia 17

2.5 The Concepts In Relation To ISO 9000 18

2.5.1 Quality Definitions And Principles 20

2.5.1.1 Quality 20

2.5.1.2 Quality Control (QC) 21

2.5.1.3 Quality Assurance (QA) 21

2.5.1.4 Quality Management (QM) 22

2.5.1.5 Quality System 22

2.5.2 Total Quality Management (TQM) 23

2.5.2.1 The Concept of Customer 23

2.5.2.2 Customer And Contractual Relationships 25

2.6 Benefits Of Quality Management 26

2.6.1 Cost Savings Of Quality Management 28

2.7 ISO 9000 Quality System Framework 29

2.7.1 Developing A Quality System To ISO 9000 32

2.7.2 Certification 34

2.7.3 SIRIM’s Role In The Implementation Of ISO

9000 34

2.7.3.1 SIRIM’s Assessment And Registration

Procedures 36

2.8 Application Of ISO 9000 QMS Standards To

Construction 38

2.8.1 Management Responsibility (Clause 4.1) 39

2.8.1.1 Quality Policy (Clause 4.1.1) 40

2.8.1.2 Organisation (Clause 4.1.2) 40

2.8.1.3 Management review (Clause 4.1.3) 42

2.8.2 Quality Systems (Clause 4.2) 43

2.8.2.1 Quality Manual 44

2.8.2.2 Quality Procedures 45

2.8.2.3 Project Quality Plans 46

ix

2.8.2.4 Quality Records 46

2.8.3 Contract Review (Clause 4.3) 47

2.8.3.1 Pre Tender Review 48

2.8.3.2 Post Tender Review 49

2.8.4 Design Control (Clause 4.4) 50

2.8.5 Document Control (Clause 4.5) 50

2.8.6 Purchasing (Clause 4.6) 51

2.8.6.1 Schedule 52

2.8.6.2 Urgent Site Purchase 52

2.8.7 Customer Supplied Products (Clause 4.7) 53

2.8.8 Product Identification And Traceability (Clause

4.8) 54

2.8.9 Process Control (Clause 4.9) 55

2.8.9.1 Quality Control On Site 56

2.8.10 Inspection And Testing (Clause 4.10) 57

2.8.10.1 Procedure 57

2.8.11 Inspection, Measuring And Test Equipment

(Clause 4.11) 59

2.8.12 Inspection And Test Status (Clause 4.12) 59

2.8.13 Control Of Non-Conformance (Clause 4.13) 59

2.8.14 Corrective And Preventive Action (Clause 4.14) 60

2.8.15 Handling, Storage, Packaging, Preservation And

Delivery Of Building Material (Clause 4.15) 61

2.8.16 Quality Records (Clause 4.16) 61

2.8.17 Reviews And Audits (Clause 4.17) 61

2.8.18 Training (Clause 4.18) 63

2.8.19 Servicing (Clause 4.19) 63

2.8.20 Statistical Techniques (Clause 4.20) 63

2.9 Critical Steps In The Implementation Of ISO 9000 In A

Construction Company 64

2.10 Advantages Of ISO 9000 Registration For The

Construction Industry 66

x

3 RESEARCH METHODOLOGY

3.1 Introduction 68

3.2 Justification of Paradigm and Methodology 68

3.3 Research Design 69

3.4 Research Stage 1 - Preliminary Research 71

3.5 Research Stage 2 - Data Collection 71

3.5.1 Semi-structured Interview 73

3.5.2 The Questionnaire 73

3.5.3 Sampling 77

3.6 Research Stage 3 - Data Processing and Analysis 78

3.6.1 Check and Verify the Returns 78

3.6.2 Coding 79

3.6.3 Cleaning the Data 79

3.6.4 Analysis 80

3.6.4.1 Frequencies Statistical Analysis 80

3.6.4.2 Average Index Analysis 81

3.7 Research Stage 4 - Writing Up 82

3.8 Ethical Considerations 82

4 ANALYSIS AND RESULTS

4.1 Introduction 84

4.2 Section A: Basic Company Profile 85

4.2.1 CIDB Grade 85

4.2.2 Region of Companies 85

4.2.3 Number of Permanent Staff 86

4.2.4 Public Listed Companies 87

4.3 Section B: Overall Information on ISO QMS 88

4.3.1 Certification of ISO Version 1994 88

4.3.2 Certification of ISO Version 2000 89

4.3.3 ISO Certification Body 89

4.3.4 Ways of ISO Certification 90

4.3.5 Cost of ISO Certification 91

xi

4.3.6 Opinions on Difference Between ISO Version

1994 and ISO Version 2000 91

4.3.7 Opinions on Advantages of ISO 2000 Compare to

ISO 1994 92

4.3.8 Main Reason For Going ISO Certification 93

4.3.9 Opinions on Benefits After ISO Certification 94

4.3.10 General Perceptions on ISO QMS Expenditure 95

4.3.11 Opinions on ISO QMS Helps Improve Company

Competitiveness 95

4.3.12 Opinions on ISO QMS Helps Improve Project

Productivity 96

4.3.13 Opinions on ISO QMS Helps Secure Overseas

Project 97

4.3.14 Encounter Difficulties in Maintaining ISO QMS 97

4.3.15 Types of Difficulties Encountered 98

4.4 Section C: Achievements After ISO Certification 99

4.5 Section D: Overall Quality Performance 102

4.5.1 Quality Objectives Pertaining To Project

Performance 102

4.5.2 Completion of Projects on Schedule 103

4.5.3 Average Delay Before and After Implementing

ISO QMS 104

4.5.4 Average Wastage Before and After Implementing

ISO QMS 105

4.6 Section E: Control and Monitoring Tool 106

4.6.1 Preparation of Project Quality Plan (PQP) 106

4.6.2 Person-In-Charge of Preparing PQP 106

4.6.3 Opinions on Standardization of the Structure of

PQP 107

4.6.4 Preparation of Inspection and Test Plan (ITP) 108

4.6.5 Person-In-Charge of Preparing ITP 108

4.6.6 Approval of All ITPs by Clients/Consultants 109

4.6.7 Appointment of QA/QC Manager 110

xii

4.6.8 Person-In-Charge of Handling QA/QC Matters

Besides QA/QC Manager 110

4.6.9 Opinions on Appointment of A Dedicated Project

Quality Controller 111

4.6.10 Data Employed in Monitoring and Analyzing

Quality Performance 112

4.6.11 Parameters Employed in Accessing Project Quality

Performance 113

4.6.12 Requirements on Analysis of Data (Clause 8.4) 114

4.6.13 Adoption of PDCA Methodology in Performing

Data Analysis 114

4.6.14 Common Tools for Data Analysis 115

4.6.15 Development of Quality Performance Indicator

(QPI) 116

4.6.16 Preparation of Periodic QA/QC Report 116

4.6.17 Softwares Employed in Performing Data Analysis 117

4.6.18 Opinions on Fragmentation of Current Practice of

Data Analysis 118

4.6.19 Internal Auditors 118

4.6.20 Attendance of Courses Related to QA/QC Tools 119

4.7 Section F: Additional Supportive Roles By CIDB 120

4.7.1 Development of a Well-Structured Approach for

Analysis of Data 120

4.7.2 Development of Software That Can Integrate

QA/QC Reports 121

4.7.3 Formulation of The Standard Quality Performance

Evaluation Form (QPEF) 121

4.7.4 Development of Performance Based Rating

System Using The Standard QPEF 122

4.7.5 Development of Quality Performance Indicator

(QPI) 123

4.8 Discussion 123

xiii

5 CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction 126

5.2 Summary of Findings 127

5.2.1 Benefits Experienced by Contractors after

Certification by ISO 127

5.2.2 Factors Affecting Contractor’s Quality

Performance 128

5.2.3 Monitoring and Controlling Tools Used by

Contractors 128

5.3 Research Limitations 129

5.4 Recommendations for Further Research Study 130

5.5 Summary 130

REFERENCES................................................................................................. 132

APPENDICES .........................................................................................135 - 152

xiv

LIST OF TABLES

TABLES TITLE PAGE

Table 2.1: National equivalents of ISO 9000 standards 30

Table 2.2: Comparison of ISO 9001, 9002 and 9003 requirements 31

Table 4.1: Results of overall achievements of contractors after ISO

certification 99

Table 5.1: Summary of achievements by contractors 127

Table 5.2: Factors affecting contractor’s quality performance 128

xv

LIST OF FIGURES

FIGURES TITLE PAGE

Figure 2.1: Structure of ISO 9000 Standards 19

Figure 2.2: Flow of outputs in a construction project 24

Figure 2.3: SIRIM’s Assessment and Registration Process 36

Figure 3.1: Research title and its variables 70

Figure 4.1: CIDB grade of ISO certified contractors 85

Figure 4.2: Region of ISO certified contractors 86

Figure 4.3: Number of permanent staff of ISO certified contractors 86

Figure 4.4: Public listed ISO certified contractors 87

Figure 4.5: ISO 1994 certified contractors 88

Figure 4.6: ISO 2000 certified contractors 89

Figure 4.7: ISO certification body for contractors 90

Figure 4.8: Certification ways of contractors 90

Figure 4.9: Cost of certification for contractors 91

Figure 4.10: Opinions of contractors on difference between ISO 1994 and

ISO 2000 92

Figure 4.11: Opinions of contractors on advantages of ISO version 2000 92

Figure 4.12: Main reason for contractors going for ISO certification 93

Figure 4.13: Opinions on whether benefits were experienced after ISO

certification 94

Figure 4.14: General perception of contractors on their ISO QMS

expenditure 95

xvi

Figure 4.15: Opinions on whether ISO helps improve company

competitiveness 96

Figure 4.16: Opinions on whether ISO helps improve project productivity 96

Figure 4.17: Opinions on whether ISO helps secure overseas projects 97

Figure 4.18: Opinions on whether contractors encounter difficulties in

maintaining their ISO QMS 97

Figure 4.19: Types of difficulties encountered by contractors 98

Figure 4.20: Level of achievements for different aspects after ISO

certification 101

Figure 4.21: Overall quality objectives of ISO certified contractors 102

Figure 4.22: Opinions on whether most of the projects are completed on

schedule 103

Figure 4.23: Average delay of contractors’ projects before having ISO

QMS 104

Figure 4.24: Average delay of contractors’ projects after having ISO QMS 104

Figure 4.25: Average wastage in contractors’ projects before having ISO

QMS 105

Figure 4.26: Average wastage in contractors’ projects after having ISO

QMS 105

Figure 4.27: Preparation of PQP by ISO certified contractors 106

Figure 4.28: Personnel of contractors who prepare PQP 107

Figure 4.29: Opinions of contractors on standardization of the structure of

PQP 107

Figure 4.30: Preparation of ITP by ISO certified contractors 108

Figure 4.31: Personnel of contractors who prepare ITP 109

Figure 4.32: Approval of contractors’ ITPs by clients/consultants 109

Figure 4.33: Appointment of QA/QC Manager in contractors’ companies 110

Figure 4.34: Personnel of contractors handling quality matters besides QA

Manager 111

Figure 4.35: Opinions on whether ISO certified contractors should appoint

a dedicated project quality controller 111

Figure 4.36: Data employed in monitoring and analysing quality

performance 112

xvii

Figure 4.37: Parameters employed in accessing project quality

performance 113

Figure 4.38: Opinions on requirements on analysis of data according to

Clause 8.4 114

Figure 4.39: Adoption of PDCA methodology by contractors in data

analysis 114

Figure 4.40: Common tools employed by contractors in performing data

analysis 115

Figure 4.41: Development of QPI by contractors 116

Figure 4.42: Preparation of periodic QA/QC report by contractors 116

Figure 4.43: Softwares employed by contractors in performing data

analysis 117

Figure 4.44: Opinions on whether current practice of data analysis is

fragmented 118

Figure 4.45: Amount of internal auditors of ISO certified contractors 119

Figure 4.46: Attendance of QA/QC related courses by contractors’ staffs 119

Figure 4.47: Opinions on whether CIDB should develop a well-structured

approach for data analysis 120

Figure 4.48: Opinions on whether CIDB should develop software that can

be adopted by ISO certified contractors 121

Figure 4.49: Opinions on whether CIDB should formulate the standard

QPEF that can be used generally by clients 122

Figure 4.50: Opinions on whether CIDB should further develop

performance based rating system using standard QPEF 122

Figure 4.51: Opinions on whether CIDB should develop QPI as a

performance benchmark 123

xviii

LIST OF APPENDICES

APPENDICES TITLE PAGE

A Questionnaire Form 135

B List of Respondents 149

1

CHAPTER 1

INTRODUCTION

1.1 Introduction

Quality is receiving attention around the world on an unprecedented scale.

Rising customer expectations and competition are setting new benchmarks for

quality in every sector. To a large extent, the changing political and economic

climate in the nineties has given quality assurance a new impetus. This trend has

continued into the new millennium. The reduction of the communist threat has

opened up new markets and resources, especially the People’s Republic of China.

The creation of regional trading groups, starting from the west with European Union,

the more recent Asean Free Trade Area (AFTA) and various budding equivalents in

the Asia Pacific region are altering the factors of competition and rewriting the rules

of international trade.

Therefore, harmonisation of standards is one of the strategies adopted to

facilitate trade within regions, and perhaps restrict entry from external suppliers

unless their products or services meet the same standards (Lam et al., 1994). One

international standard seems to be pervading all regions and industries. This

2

standard is quality assurance and it is increasingly recognised by buyers and

suppliers. Quality concepts are not new. They started emerging in the fifties mainly

from the United States which had undisputed economic domination outside the then

communist bloc. In the sixties, the Japanese, well-known for inferior products,

seriously embraced quality principles, mainly from American quality pioneer

Deming. The Total Quality Control (TQC) approach was established and vigorously

pursued. Within a decade, the Japanese had caught up and began to surpass the West

in terms of product types, technologies, as well as quality. Today, the Japanese are

so renowned for their pursuit of quality that every product in the market with the

label “Made in Japan” is an assurance of top quality for all consumers!

While knowledge of quality began to spread, there were different perceptions

for both suppliers and consumers. Consumers who were insistent on quality had to

understand the quality approach if their potential suppliers, who often adopted

principles and practices from one quality guru (Lam et al., 1994). A breakthrough

came when ISO 9000 quality standards were introduced to the world.

1.2 Issues and Problem Statements

The construction industry is a main industry which relates closely to the

country’s economic growth. When the economy booms, the construction industry

will follow in order to fulfil increasing demand. This is because the effective

demand for products and services will increase in relation to the increase of the

population and also when the income of the people increases. Therefore, various

development projects are carried out by the government and as well as the private

sectors. Among the mega construction projects carried out and completed since the

slow recovery of our economic downturn are such as Kuala Lumpur International

Airport (KLIA), Kuala Lumpur City Centre (KLCC) and Petronas Twin Tower,

3

Sepang Formula 1 Circuit, Stormwater Management And Road Tunnel (SMART),

and so on. These engineering breakthrough mega-projects have increasingly put

Malaysia on the international arena.

With the rapid development of the industry, the issues of quality and safety

are also rapidly gaining awareness from the public. Among these common issues are

such as inferior quality of construction materials, too many defects, delays in

completing works, carelessness in supervising site safety, high accident rates, and the

recent environmental impact issues. With the recent tragedies happening to some

local construction projects, the public’s confidence towards the image of our

construction industry has greatly reduced. Among the quality issues in our local

construction are such as the famous collapse of the Highland Tower Block A on 11th

of December 1993, the RM120 million Middle Ring Road 2 which requires an

additional RM70 million for repair works, the RM198 million Navy Recruit Training

Centre (Pularek) which had 7,032 defects which needed an additional RM13 million

to rectify, as well as the falling of a steel formwork which killed a company

executive on 30th

December 2005. According to Second Finance Minister Tan Sri

Nor Mohamed Yakcop and deputy Auditor-General Anwari Suri, the main reasons

are the contractors did not hire skilled and competent workers and the plans for the

projects were sub-standard (New Sunday Times, 4th

February 2007).

All these incidents clearly give us an indication that there is still work to be

done to improve the quality of works in our construction activities. Some time ago

on 15th

January 1993, the board of SIRIM has introduced the MS ISO 9000, a quality

standard system recognised throughout the world, to our local construction industry

(Wan Yusoff and Norizan Mansor, 1996). Realising the importance of Quality

Management System (QMS), some contractors are beginning to make application to

be certified, mainly through the board of SIRIM as well as others. In addition, in

order for contractors to ‘survive’ in a highly competitive market, they need to fulfil

all requirements by producing quality products within a competitive cost as well as

using minimal time. If they fail to achieve the required standard of quality, chances

are they are most likely to face the consequences of losing future projects. The level

4

of performance achieved by contractors will be determined by clients, independent

bodies, the organisation itself, and also by surrounding competitors.

Therefore, the root issue in quality performance is why it needs to be

measured and how? There are a few famous phrases from quality management gurus

such as “What gets measured gets done” and “If you can’t measure it, you can’t

manage it”, which in turn gives an answer to the root issue as mentioned. According

to Mokthar Abdullah (1996), “Quality improvement without measurement is like

hunting ducks at midnight without a moon – lots of squawking and shooting with

only random results and with a high probability of damage”. While principles from

quality pioneer Deming stress that quality measurements need to be assessed from

what is being done and not from what is being planned or termed as missions or

objectives.

In order to evaluate the quality performance, contractors need to set targets,

measure what has been achieved and compare with a set of standards, plus determine

the position of their competitors. Without evaluating the quality performance, all

efforts will be aimless and most of the time will only be subject to contractors’ own

taste or preference. As a result, it will be difficult for contractors to know whether

they are left behind in the competition or whether their products and services achieve

the quality standards that are currently being practiced.

In the construction industry, every project completed needs to be measured so

that the overall quality system can be improved. Currently, contractors are using

their own systems to measure their quality performance. Therefore, research needs

to be carried out to focus on a system that can effectively measure the quality

performance of ISO 9000 certified contractors. Besides, this also serves to evaluate

how far have they maintain their quality performance in the construction industry.

5

1.3 Research Objectives

(a) To identify the benefits experienced by contractors after having ISO

9000/2001 certification.

(b) To identify the factors affecting contractor’s quality performance.

(c) To identify the monitoring and controlling tool used by contractors in

assessing their quality performance.

1.4 Research Scopes and Limitations

Basically, this research project focuses on reviewing the Quality Management

System (QMS) of ISO 9000/2001 certified contractors registered with the

Construction Industry Development Board (CIDB) of Malaysia. The survey area

will cover the whole of Malaysia, but focus will be primarily on the central region,

especially contractors from the federal territory of Kuala Lumpur and the state of

Selangor.

1.5 Research Significance

CIDB as a statutory body established by the Malaysian Federal Government

back in 1994, plays an extremely important role in the continuous development of

6

the Malaysian construction industry. The Lembaga Pembangunan Industri

Pembinaan Malaysia Act 1994 has paved the way for the empowerment of CIDB

Malaysia to:

• Create a climate for a more vigorous development in the construction

industry.

• Carry out its functions as the enabling authority to help construction industry

Players overcome bureaucratic obstacles.

• Play the role of facilitator by addressing the current and future needs of the

Construction Industry

In short, the Act serves to encompass and embody the roles and functions of

CIDB Malaysia plus an instrument to monitor the development of the construction

industry via CIDB’s initiatives that are focused on charting a planned and systematic

growth of the industry. By utilising ISO 9000/2001 QMS, CIDB aims to improve

the quality along with the image of the industry as a whole. Without an effective

QMS, products or services are likely to face problems in meeting client’s satisfaction.

Hence, there is a need for an effective quality performance measurement

system with the target of continuous improvement. This research will bring benefits

to those directly involved in the construction industry, especially to the authorities

such as CIDB and also to all contractors, as well as to clients and consultants to a

certain extent. This research will also help CIDB identify the level of performance

by ISO 9000 certified contractors as well as factors that can affect quality

performance. Hopefully, this research will also contribute to ISO 9000 certified

contractors in their quest for continuous improvement in quality and becoming a core

business success for their organisations. Furthermore, it can act as a guideline for

clients and consultants in selecting the most competent contractors to carry out their

projects successfully and for the public to gain full confidence from the contractors’

end products.

7

1.6 Research Approach

(a) Preliminary Research/ First Stage Literature Review

Analysis of documents from various sources such as text books, journals, acts,

electronic medias, internet, reports, conference papers, previous research, etc

to gain a better understanding of the issues and problems to be studied.

(b) Data Collection

This includes utilising questionnaire to collect primary data. Questionnaire

will be designed and sent to all ISO 9000/2001 certified contractors in

Malaysia. In addition, a more thorough second stage literature review will be

carried out to collect secondary data.

(c) Data Analysis

Data collected will then be analysed either manually or by using computer

softwares such as SPSS and Microsoft Office Excel. Analysis methods will

be determined according to the suitability of each variable. Among the

methods to be used are such as average indexing analysis, frequencies

statistical analysis, and so forth. The purpose of data analysis is to answer

and explain the stated research objectives in the form of graphs, charts, tables,

writings, etc.

(d) Writing-up

This will be the final stage. This includes the process of documentation

together with summaries, conclusion, and future research recommendations

relevant to this topic.

8

1.6.1 Research Methodology Flow Chart

FIRST Stage: PRELIMINARY RESEARCH

SECOND Stage: DATA COLLECTION

Primary Data Secondary Data

THIRD Stage: DATA ANALYSIS

Manually Computer

FOURTH Stage: WRITING-UP

Identify Problems

Determine Research Field

Choosing Research Title

First Stage Literature Review

Issues & Problem Statements

Objectives & Scope of Research

Collection of Data

Questionnaires

~ ISO 9000/2001 Certified Contractors

Literature Review

~ Second Stage

Data Collection and Arrangement

Analysis of Data

Summary, Conclusion and Suggestions

Documentation

Interview

~ CIDB (Southern Branch) Manager